Posting Margins

Margins can be posted:

a)    As cash in euros credited by the Clearing Member or its Payment Agent to MEFF's Account on the TARGET2 platform. This cash amount will be immediately invested as a overnight buy and sell back repo in MEFF's securities account with Iberclear.

b)    By a pledge of securities, in accordance with the criteria set out in the Circular on Margin collateral in the form of securities, or the circular which replaces it.

c)    By a free of payment transfer of securities, effected by the Clearing Member to MEFF's securities account with Iberclear or with Cleastream, in accordance with the criteria set out in Circulars on Margin collateral in the form of securities in IBERCLEAR and Margin collateral in the form of securities in CLEARSTREAM, or those circulars which may replace them.

By means of a first demand guarantee, exclusively under the conditions and for the types of guarantees as laid down in section 3 of this circular 

1. As cash in euros credited by the Clearing Member or its Payment Agent to MEFF's Account on the TARGET2 platform. This cash amount will be immediately invested as a overnight buy and sell back repo in MEFF's securities account with Iberclear.
2. By a pledge of securities, in accordance with the criteria set out in the Circular on Margin collateral in the form of securities, or the circular which replaces it.
3. By a free of payment transfer of securities, effected by the Clearing Member to MEFF's securities account with Iberclear or with Cleastream, in accordance with the criteria set out in Circulars on Margin collateral in the form of securities in IBERCLEAR and Margin collateral in the form of securities in CLEARSTREAM, or those circulars which may replace them.
4. By means of a first demand guarantee, exclusively under the conditions and for the types of guarantees as laid down the circular Posting of Margins.

The assets accepted can be modified in accordance with the relevant Circular.

Securities are valued on a daily basis.

• The fixed income is valued at the market clean price plus accrued interest. Valuation haircuts are applied according to the residual maturity of the asset.
• For variable income securities, which are part of the Ibex-35 Index and are underlyings of MEFF futures or options, the valuation will be the result of applying a valuation haircut to the market price of the share equal to:
   
  Maximum (25%, valuation interval of the MEFF’s margin parameters Circular)